Jul 29, 2005|
This one's for a Mumbaikar!
Thank God that no political establishment has, till now, blamed foreign intelligence agencies for the flood situation faced by the financial capital of India, Mumbai, since the past 3-4 days. Life stood standstill! Mumbaikars withstood, this time the onslaught of rains (and not bombs) as they made their way through to their homes after 24-36 hours of struggle. Even the equity markets (which remained open despite the heavy rains) seemed to cheer the spirit of the 'half underwater' man on the street. The quote, "Life must go on" was characterized to its best as Mumbai braved the 8th highest rainfall in India's history.
This downpour, however, brought to forefront the loopholes (no, not drainage holes!) in the city's administrators' contingency planning systems and forecasting abilities of the Indian Meteorological Department, which again proved its abilities in predicting rains after they've already arrived! While there's no denying the fact that such a high level of rainfall was unprecedented, the dream of making Mumbai the next Shanghai has surely been shaken. Forget Shanghai, Mumbai, being India's financial capital, needs to become India's best city first in terms of infrastructure and quality public services. Shanghai is a long way ahead!
As for the stock markets are concerned, there's been nothing stopping them in creating new highs as days pass. While there are all reasons to believe that fundamentals do not justify such a momentum, how do you make believe the small investor who has 'given his all' to media reports justifying 'Buy' recommendations on stocks whose underlying companies have not performed well in the past and have serious management issues. What should a retail investor do if not give in to the 'strong' arguments that follow such recommendations? Here's a way out. Stop listening! Do not let a misguided step turn your investment venture into a speculative misadventure.
India is surely on a growth path. We understand that! But the path ahead will surely not be as benign as has been the case in the past two years. There are enough global (remember, we are a global economy now!) imbalances like the fragile US economy and interest rates, slowing China and currency adjustments, which might strike a strong negative chord anytime.
Investors, thus, have to be patient with their money. Mumbaikars can well teach others a lesson or two about this theory of maintaining discipline and balance of mind in times of uncertainty and crisis! Whatsay? Neck deep waters are navigable, but neck deep losses can sink you!
More Views on News
Jun 10, 2017
Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.
Aug 18, 2017
Buying the index now will hardly help make money in stocks even in ten years.
Aug 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Aug 17, 2017
PersonalFN simplifies the mutual fund account statement for you.
Aug 17, 2017
A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407